Government and Consumer Protection

Write to Minister Cannon & your MP today!

Dear Mr. Lake & Minister Cannon,

I reside in the constituency of XXXXXXXXXXXX, and I want to express my feelings of outrage at automobile manufacturers, regarding the price discrepancy between cars in Canada and those in the US. You know how much this has been in the news recently, and it won’t go away until prices are lowered to match the reality of the value of the Canadian dollar in relation to the US dollar.

I need to buy a new vehicle in the next couple of months, but the prices of the models I am considering are $10,000 to $20,000 more in Canada. To be specific, the cars I’m considering range from C$27,000 to C$39,000 in the US, and these same models are priced between C$37,000 to C$59,000 in Canada. Not only is there no justification for this pricing discrepancy on the part of the manufacturers (especially considering many of the vehicles sold on both sides of the border are made right here in Canada to the exact same specs), but also I can not afford this. My only option now is to buy in the US unless these artificially-high prices in Canada come down to reflect the relative values of Canadian and US currencies. Check out this site for many, many examples of this ridiculous gouging of the Canadian consumer by the auto industry.

Note that I believe the pricing problem takes place at a corporate level, and that individual automobile dealers are not to blame; I’m sure dealers would love nothing more than to see prices fall to near parity because they would only sell more vehicles.

It appears to me and many others that the auto manufacturers are using indisputably misleading advertising and scare tactics to prevent Canadians from purchasing vehicles in the United States, often by implying that a handful of slightly different equipment (perhaps a different battery, engine heater and headlight washers) accounts for the huge price difference. Some are offering insulting token rebates and incentives — but nothing that makes prices even approach parity. This insults the intelligence of every Canadian car shopper.

As a Canadian who dutifully pays his income taxes and is presently unable to afford the inflated price of a new vehicle in Canada (or a decent used one as their prices are comparatively inflated), I respectfully demand government intervention.

What I would like to see is the following:

1- An inquiry into international price fixing, an investigation under the Competition Act by the Canadian Competition Bureau, and possibly a criminal investigation by the RCMP into the dealings between the Canadian & American arms of the automakers with regard to blatant price fixing activities. Activities I consider “blatant” are collusion between the Canadian and US arms of each manufacturer to: a) inflate Canadian automobile prices b) void the warranties of vehicles legally imported into Canada from the US or other countries and c) deny purchase incentives to Canadians choosing to purchase in the US

2- That the current Transport Canada antitheft electronic immobilization device requirement for new cars (per Canadian Standard CMVSS 114 "Locking and Immobilization Systems") be revised to permit aftermarket immobilizer systems to be installed rather than just relying on the OEM systems. While I agree that the immobilizers are a GOOD thing, it is the manufacturers who alter their devices ever so slightly, if at all, between the Canadian and US models so that they can then claim to Transport Canada (TC) that do not meet the new Canadian standard, thus making their US cars inadmissible to be imported into Canada. This immobilizer issue alone should not dictate whether a car is inadmissable, as a simple aftermarket modification or new system can be installed to bring it inline with the Canadian standard. There are numerous other examples of items that are required in Canada but not in the US (i.e., Daytime Running Lights, Infant Restraint and Child Tether Anchorage differences and 8 km/hr bumpers) but DO NOT make the vehicles inadmissable - they are still shown to be admissable but with a 45 day window after importation to get the required modifications completed to meet TC regulations. If TC is willing to permit importation of vehicles with temporary safety-related deficiencies such as child restraints AND bumpers that do not meet Canadian regulations (until the modifications are completed of course), common sense would say that they SHOULD do the same for something that is strictly an anti-theft device. This is just another artificial barrier to trade in a thinly veiled attempt by the auto manufacturers to protect their profits in Canada, but unfortunately Transport Canada is playing right into their hands with the current state of this Canadian standard. This standard should be revised immediately to allow the immobilizers to be modified as required to meet the standard once the vehicles are imported. It should NOT be used as an excuse by the automakers to prevent their US vehicles from being legally imported into Canada.

The Canadian government must take action against corporations for their discriminatory, dishonest, and fraudulent actions. Incidentally, automobile manufacturers’ refusal to honour warranties on American-bought vehicles in Canada is illegal, under the BC Supreme Court case “Toyota Canada Inc. v. Lipetz, 1998 CanLII 4473 (BC S.C.)”, yet manufacturers are still denying warranties with seemingly no fear of reprisal (to wit, Honda, Acura, and Chrysler).

Note that the Conspiracy section of the Canadian Competition Act prohibits “two or more persons to prevent or unduly lessen competition or to unreasonably enhance the price of a product.” Evidently, the Competition Bureau has completely failed to protect Canadian consumers in this regard.
I believe we are slowly surrendering our very Canadian principles of integrity, self determination and fairness to the whims of corporations that are growing so powerful that they now manipulate prices, government regulatory bodies, the labour force and even the economy on their own terms in the name of profit. Tenets of honesty, dignity, and honour seem to go out the window if it is better for business.

It is now time for the Federal Government to step in quickly to set this matter straight, and I believe that all of Canada will be watching the way this is dealt with. I know I will. Please use all the resources available to put the Canadian people ahead of corporate greed. I feel very strongly about this so I look forward to and appreciate your quick action, and would be grateful for a response from both of you on this matter.

Thank you very much,

YOUR NAME
YOUR LOCATION